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THE SCENARIO
A while back, I talked about a note that's available for purchase. As with all notes, however, there's the possibility of the borrower paying it off early.
The question: If the borrower owes $44,948.85 on a fully-amortizing note with 99 monthly payments left of $717.35, but they decide to pay it off in 2 years, what will their payoff amount be?
THE SOLUTION
This one has two parts, which are both straightforward.
- Find the interest rate on the loan
- Find the payoff amount
First things first, make sure the c...
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